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Monday June 3rd, 2024

Sri Lanka apparel exports up 2.8-pct in Nov with investments in production

ECONOMYNEXT- Sri Lanka’s apparel exports grew 2.8 percent to 459 million US dollars from a year earlier in November 2019 due to an increase in production capacity and re-routing of supply chains amid the US-China trade war, an industry official said.

“Sri Lanka’s apparel exports increased in the November period because most of the Sri Lankan manufactures expanded their internal production capacity in 2019,” Sri Lanka Apparel Exporters Association (SLAEA) Chairman Rehan Lakhany said.

“The US-China trade war to some extent helped with orders diverted to Sri Lanka, so it was in our favour”.

Sri Lanka’s total apparel exports from January to November 2019 grew 5.8 percent to 4.85 billion US dollars, the highest ever, SLAEA data showed.

Apparel exports to the European Union (EU) grew 10.99 percent to 191.0 million US dollar in November 2019 compared to the same period in 2018.

The total exports to EU from January to November in 2019 was 5.7 percent or 2.03 billion US dollars, up from 2018.

Lakhany said exports to the EU has increased with continued leverage of GSP Plus preferential tariff benefits and market certainty with Brexit coming to a conclusion.

However, the exports to the US in November fell 4.8 percent to 208 million US dollars but exports to US for the period January to November 2019 recorded a growth of 3.7 percent or 2.14 billion US dollars.

“The exports to US decreased in November due to the continuous slowdown in sales of Victoria Secret, which is a large customer of Sri Lanka,” Lakhany said.

L Brands Group’s subsidiary, Victoria’s Secret posted a 7 percent fall in same-store sales in the US and Canada in the third quarter ending November 02. The parent posted a loss of 0.91 US dollars per share, dragged down by Victoria’s Secret’s performance.

The firm in an earnings release said it was expecting a 2 US dollar per share profit in the fourth quarter ending in January, which is the main shopping season for Thanksgiving and Christmas holidays.

Victoria’s Secret has been bleeding sales and divesting its brand portfolio due to changing consumer tastes, which have embraced body-positive brands that place a greater emphasis on comfort.

The brand’s flagship Victoria’s Secret Fashion Show was cancelled in 2019. L Brands said in an official statement that the show was cancelled as a result of fall in sales and show ratings, and therefore it will focus on evolving its marketing strategies.

Overall, US clothing sales in November fell 2.65 percent, when adjusted for seasonality and holiday trading, according to the US Census Bureau’s early estimates. (Colombo/Jan13/2020)

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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